The Washington Wire Archive - The S Corporation Association

The Myth of Beneficial High Tax Rates

The inequality narrative driving tax policy this year is built on three shaky foundations: (1) that the rich have captured all the economic gains in recent years, (2) that Americans support very high tax rates, and (3) that America thrived under much higher tax rates than are being considered today. S-Corp addressed the first two fallacies (here and here). A recent Senate Finance Committee hearing on how to make the tax code fair provides a good example of why the third leg is just as unstable.

The hearing featured Abigail Disney, who is part of the group …

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admin2021-05-05T15:22:26+00:00May 5, 2021|

Are the Pollsters Wrong on Taxes?

Politico recently ran a story about the soul-searching taking place in the polling community, whose 2020 projections predicted a landslide victory for Joe Biden and an significant expansion of the Democratic majority in the House.

“Twenty-twenty was an ‘Oh, s—‘ moment for all of us,” said one pollster involved in the effort, who was granted anonymity to discuss the process candidly. “And I think that we all kinda quickly came to the point that we need to set our egos aside. We need to get this right.”

That’s about where the answers end. The collaboration’s first public statement acknowledges that their industry “saw …

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admin2021-04-26T16:17:36+00:00April 26, 2021|

SALT Parity Promises Billions in Main Street Relief

More good news on the SALT Parity front. New York has become the 10^th state to adopt our reform legislation while a similar bill is sitting on the desk of the Georgia Governor awaiting his signature, which would make 11.

Those states join Connecticut, Wisconsin, Oklahoma, Louisiana, Rhode Island, New Jersey, Maryland, Alabama, and Arkansas in passing SALT Parity, while a dozen others are actively considering similar bills. Illinois is new to this list, following yesterday’s unanimous vote in favor of S.B. 2531 in the state Senate. The map below shows the current status of SALT Parity legislation.

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admin2021-10-14T17:00:50+00:00April 23, 2021|

A Little Reality on the Tax Gap

IRS Commissioner Charles Rettig made news last week when he endorsed a new tax gap estimate from, among others, French economist Gabriel Zucman. We reviewed the Zucman paper here and found it typically wanting – questionable assumptions and methodologies leading to improbable conclusions.

That didn’t stop Rettig from endorsing the estimate, however. Well, he sort of endorsed it. Here’s what he actually said, according to Bloomberg:

Internal Revenue Service Commissioner Chuck Rettig told a Senate panel Tuesday that previous tallies of the tax gap — which came to a cumulative amount of about $441 billion for the three years through …

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admin2021-04-20T17:07:03+00:00April 20, 2021|

S-Corp Hosts Tax Day Summit

S-CORP and NFIB hosted their Main Street Tax Day Summit yesterday — a two-hour virtual event focused exclusively on the tax policy issues facing small and individually- and family-owned businesses.

Sen. Steve Daines (R-MT), one of Main Street’s staunchest allies on Capitol Hill, kicked things off. Among other topics, the Senator shared his thoughts on the current legislative outlook, and emphasized the importance of preserving key provisions from the 2017 tax bill, notably the Section 199A deduction:

These businesses are the center of the equation for driving economic growth. The sad reality is …

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admin2021-04-16T13:43:39+00:00April 16, 2021|